MCP 31-4 Current liabilities Included in Dwight Corporation's liability account balances at Dec. 31, 2021, were the following: 14% - note payable issued Oct. 1, 2019, maturing Sept. 30, 2022. 16% - note payable issued Apr. 1, 2019, payable in six annual installments of P100,000 beginning Apr. 1, 2020 P250,000 400,000
Q: 3. Prepare the statement of changes in equity for the year ended December 31, 2021. (Deductible…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Peter Company purchased equipment on January 1, 2018, for $28,000. Suppose Peter Company sold the…
A: The accumulated depreciation is the amount of depreciation charged till date. The book value of…
Q: If a company had a contribution margin of $1,000,000 and a contribution Margin of 40%, total…
A: To calculate the total variable costs, we need to use the contribution margin ratio and the total…
Q: Exercise 5-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a…
A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…
Q: Ay 1 mcqs Bushman Ltd is preparing its manufacturing overhead budget for 2022. Relevant data are as…
A: 1.) Correct option:- b. $462,000 Working:- The total manufacturing overhead costs for the year can…
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…
A: Specific Identification method of inventory valuation: in this method Every unit of inventory is…
Q: Margin of safety a. If Kirwan Company, with a break-even point at $435,200 of sales, has actual…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Junior plc is a company that, during the year ended 31 December 2020, paid $25,000 debenture…
A: As per the given information: Debenture interest - $25,000Ordinary dividend- 8% per share on 1…
Q: Current Attempt in Progress Blossom is a distributor of fruit who uses FIFO and has the following…
A: Net realizable value refers to a method that is used for evaluating the value of assets while…
Q: Vaughn Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par…
A: Treasury stocks are repurchased shares of the company. The company has the power to reissue these…
Q: Calculate the Average Collection period for 2018 and 2017 for the Better Books Company. Assuming…
A: Average collection period is the period required to get amount of money from customers that they…
Q: PROBLEM 2: You are auditing the financial statements of Light Inc. for the year 2021. The details of…
A: Retained earnings is the accumulated profit of the business that is used for the growth of the…
Q: A company has total assets of $13,100,000; net earnings of $1,400,000; total stockholders' equity of…
A: Book value per share : Book value per share is calculated by subtracting the preferred stock from…
Q: Required information [The following information applies to the questions displayed below.] Trey…
A: Weighted Average Cost(WAC) Method: It is a inventory valuation method. This methhod is used in the…
Q: Assume that the Industry average for the current ratio for 2022 Is 1.5. Compare this industry…
A: Financial statements provide a snapshot of a corporation's financial health at a particular point in…
Q: The net income of Foster Furniture, Inc., amounted to $1,700,000 for the current year. a.…
A: To compute earnings per share (EPS) for common stock, divide the net income by the number of shares…
Q: Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations,…
A: Flexible Budget: Flexible budget is prepared for a different level of activity. Variable costs…
Q: At the beginning of the period, the Cutting Department budgeted direct labor of $66,360 and…
A: The budget is an estimate of the income that will be earned and expenditures that will be incurred…
Q: Joumalize the transactions
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…
Q: On January 1, 2023, Hole Company purchased 600 of $1,000 face value, 8% bonds of Lid Corp., for…
A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…
Q: Perpetual inventory using weighted average Beginning inventory, purchases, and sales for WCS12 are…
A: Under weighted average model, cost of the goods that are available for sale divided by the number of…
Q: September 25 Cash deposit September 28 Check #5907 Check #5909 September 29 September 30 September…
A: BRS (Bank Reconciliation Statement) is the statement prepared by the management at certain time…
Q: High Country, Incorporated, produces and sells many recreational products. The company has just…
A: The income statement tells about the net profit or loss incurred during the period. The absorption…
Q: Vernon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its…
A: Relevant costs are the costs which can be avoided. These are incurred only when a specific business…
Q: You have recently been hired as the assistant controller for Stanton Industries, a large, publicly…
A: The allowance for uncollectible accounts is a contra asset account that represents the estimated…
Q: The Lamar Company manufactures wiring tools. The company is currently producing well below its full…
A: In decision making process we consider only incremental cost. Incremental cost includes variable…
Q: Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known…
A: Calculation of expected change in annual operating income by dropping T2 and selling Only T1 as…
Q: The records of Pronghorn Menswear report the following data for the month of September: Sales Sales…
A: Lets understand the basics. Retail inventory method is a method used for estimating value of stores…
Q: analyzing business transaction- M2-9 2. journalising business transaction-m2-10 3. posting to…
A: Lets understand the basics. As per balance sheet or accounting equation, total assets are always…
Q: Splish Music Emporium is preparing its financial statements for the year ended December 31, 2020.…
A: Warranty expense is treated as a contingent liability and a provision for the same is made based on…
Q: Jamlee Investment Ltd is planning to make 120,000 units per period of a new product. The following…
A: The variance analysis is referred to as the investigation of the discrepancy between the anticipated…
Q: Problem #7: Operating Budgets Marker Products, Inc. sells all of its products on credit. The company…
A: Cash collection budget :— This budget is prepared to estimate the collection of cash from customer…
Q: 4. An entity receives cash equivalent to 35% from a customer on a merchandise order with a value of…
A: Unearned revenue is that portion of revenue that is received in advance from the customer of goods…
Q: Sheniqua, a single taxpayer, had taxable income of $80,528. Her employer withheld $12,884 in federal…
A: Income tax liability is the amount of tax that an individual or entity owes to the government based…
Q: Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount…
A: The practice of identifying and disclosing lease transactions in a company's financial statements is…
Q: Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and…
A:
Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a…
A: In process costing, instead of recording expenses for each individual item, organizations measure…
Q: Georgia Co. had beginning inventory of $800 and ending inventory of $400. The cost of goods sold was…
A: Cost of goods sold is Opening inventory+ purchased inventory - ending inventory Opening inventory…
Q: Sassy Arrangements has just completed operations for the year ended December 31, 2024. This is…
A: Solution: Net income is computed as = Revenue - Expenses
Q: secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to…
A: Answer : price of new car =$16000 Less : Down payment = $16000*25% = $4000 Amount financed = $16000…
Q: The US GAAP provides rules and guidance for what two primary financial reporting purposes?
A: The US GAAP which has given and contributed in the field of the accounting a very massive work which…
Q: Required information [The following information applies to the questions displayed below.] Iguana,…
A: In accounting, budgeting refers to the process of creating a financial plan for a specific period,…
Q: The following are Margin Company's production costs for December: $ 106,000 96,000 2,000 Direct…
A: The costs should be traced to specific products in the production process are direct costs i.e…
Q: Blossom Construction Company has entered into a non-cancellable contract beginning January 1, 2023,…
A: Using the percentage method, the profit or loss is recognized on the basis of the percentage of the…
Q: After many years of success, Kaputnik Co. recorded net operating losses for the years year 13…
A: We have, Operating losses from year 13 to 16 = $250 million Tax rate for years 13 to 16 = 35%…
Q: Suppose a new car is purchased for $41,357 and depreciates by 21% over the first year of ownership.…
A: Depreciation rules are the guidelines and methods used to calculate the decrease in the value of an…
Q: Ay 1 Fill in the missing amounts from the following chart regarding the estimation of Bean…
A: Incomplete question- Complete question is :- Cost Retail Merchandise Inventory, October 1…
Q: Black Ltd commenced trading on 1 September Year 3 and is preparing its accounts for the year ended…
A: Telephone expense for the first year includes the amount paid or payable for calls and rental paid…
Q: What is the stock to sale ratio for the sleepwear department for May if sales are planned at…
A: Stock to sale ratio is the measure which helps the entity in determining the inventory of the…
Q: c-2. Has net accounts receivable changed from December 31, 2020? Complete this question by entering…
A: ACCOUNT RECEIVABLE Account Receivable is the Amount which is Receivable from the Customers. Account…
Step by step
Solved in 2 steps
- Disclosure of Debt On May 1, 2019, Ramden Company issues 13% bonds with a face value of 2 million. The bond contract calls for retirement of the bonds in periodic installments of 200,000, starting on May 1, 2020, and continuing on each May 1 thereafter until all bonds are retired. Required: How would the preceding information appear in Ramdens balance sheets on December 31, 2019, and 2020?Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.Cornerstone Exercise 9-26 Debt Issued at Par On January 1, 2019, Brock & Co. issued S600,000 of bonds payable at par. The bonds have a 9% stated rate, pay interest on March 31, June 30, September 30, and December 31, and mature on December 31, 2019, Required: Prepare the journal entries to record the interest payment on June 30, 2019. Use the following information for Cornerstone Exercises 9-27 and 9-28: On January 1, 2020, Drew Company issued S350,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31.
- Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?Financial Statement Violations of U.S. GAAP The following are the financial statements issued by Allen Corporation for its fiscal year ended October 31, 2019: Notes to Financial Statements: 1. Long-Term Lease. Under the terms of a 5-year, noncancelable lease for a building, Allen is obligated to make annual rental payments of 40,000 in each of the next 4 fiscal years. 2. Pension Plan. Substai1tially all employees are covered by Allens defined benefit pension plan. Pension expense is equal to the total of pension benefits accrued and paid to retired employees during the year. Because it is a defined benefit plan that is paid every year, no pension liability exists. 3. Patent. The patent had an estimated remaining life of 10 years at the time of purchase. Allens patent was purchased from Apex Corporation on January 1, 2019, for 250,000. 4. Deferred Income Tax Payable. The entire balai1ce in the Deferred Income Tax Payable account arose from tax-exempt municipal bonds that were held during the previous fiscal year, giving rise to a difference between taxable income and reported net earnings for the fiscal year ended October 31, 2019. The deferred liability amount was calculated on the basis of past tax rates. 5. Warrants. On January 1, 2018, one common stock warrant was issued to shareholders of record for each common share owned. An additional share of common stock is to be issued upon exercise of 10 stock warrants and receipt of an amount equal to par value. For the 6 months ended October 31, 2019, the average market value for Allens common stock was 5 per share and no warrants had yet been exercised. 6. Contingent Liability. On October 31, 2019, Allen was contingently liable for product warranties in an amount estimated to aggregate 75,000. Required: Next Level Review the preceding financial state1nents and related notes. Identify any inclusions or exclusions from them that would be in violation of GAAP, and indicate corrective action to be taken. Do not comment as to format or style. Respond in the following order: 1. Balance sheet 2. Notes 3. Income statement 4. Statement of retained earnings 5. GeneralInterest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a 12,000,60-day note. Required: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customers repayment on February 9, 2020, assuming: 1. Interest of 12% was in addition to the face value of the note. 2. The note was issued as a 12,000 non-interest-bearing note with a present value of 11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year. (Round to the nearest dollar.)
- Note Payable and Accrued Interest Fairbome Company borrowed $60,000 on an 8%, interest-bearing note on October 1, 2019. Fairborne ends its fiscal year on December 31. The note was paid with interest on May 1, 2020. Required: 1. Prepare the entry for this note on October 1, 2019. 2. Prepare the adjusting entry for this note on December 31, 2019. 3. Indicate how the note and the accrued interest would appear in the balance sheet at December 31, 2019. 4. Prepare the entry to record the repayment of the note on May 1, 2020.On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000